I have been reading a lot of gloomy remarks about peer to peer lending around the web. Some of them are valid concerns and complaints, but most in my opinion simply show a lack of understanding and education. I have a feeling that many people jumped on the bandwagon of investing in peer to peer lending without fully understanding. I sure did, but I also committed to learn more about this new opportunity. My attempt with this blog has always been able to keep me honest about my investments and in turn educate myself (and hopefully maximize my own personal returns along the way). I’ll review a few of these concerns in this post and I welcome any discussion in the comments section. [Read more…]
Q3 of 2014 continued the trend of returns over 10% in both Prosper and Lending Club. I now have nearly $22,000 invested between Lending Club and Prosper. I recently stopped adding to my Lending Club account, which means I’m continuing to increase my average age a lot faster. (It’s currently at 7.8 months even though I’ve been investing for more than a year.) Besides small deposits to my Prosper account, I’m not making anymore substantial additions to my allocation to this asset class. This is simply due to the fact that I want to keep my allocations reasonable across all of my investments. Now to the fun part… [Read more…]
By now you’ve probably seen my returns in peer to peer lending as well as some of the other bloggers in this space (Peter, Simon). Today, I’m happy to feature Carl who I got to meet at LendIt this year. He has over 300k invested in Lending Club and his returns have been hovering above 11% using XIRR for 2014. (If you’re interested in calculating your returns this way – check out this video) Carl also began to sell his notes on FOLIOfn and it will be interesting to do a follow up early next year to see how his returns were affected. It’s always nice to get a different perspective on things and certainly Carl isn’t the average p2p lending investor. In fact, he doesn’t employ any automation to pick his notes. Every note is hand picked. Take it away Carl! [Read more…]
I apologize for the delay in my second quarter 2014 returns as the summer has changed some of my priorities. When you live in Wisconsin, it is important to take advantage of the nice weather while it lasts. My returns have slipped .85% from the last time I checked in April 2014. Since I have used FOLIOfn to buy notes for the penny note strategy, I rely on XIRR in order to calculate my returns. My strategy has remained about the same except for the small hiccup which affected P2P-Picks. Instead of letting my cash sit idle, I simply created a higher volume filter in Nickel Steamroller. I still keep an eye out for notes on FOLIOfn, but it is time consuming and I already have about $2500 worth of notes purchased. [Read more…]
It has been awhile since I’ve had a post outlining my returns with p2p lending and my plan is to be more consistent with these posts in the future. I want to preface this with the fact that my Lending Club notes are still not seasoned which means my returns below are not an accurate representation of what they will be. In fact, I have seen little progress in the average age of my notes as I continue to add funds to my account. [Read more…]
Some of you may have already heard about or seen a change to your Lending Club account. Last week they added an on/off switch for adjusted net annualized return. Often times, I am met with skepticism when I tell people about my investment in Lending Club and it is soon followed by a question of my return on investment. I feel that I can now give them a fairly accurate number without having to do any math. [Read more…]
Awhile back, LendingClub had a part of their site that stated something to the effect that no investor with 800+ notes had negative returns. They have since removed this and I had not seen any statistics that stated something similar until yesterday when I was browsing the site.
1 As of May 24, 2013, over 99% of investors with 100 of more Notes and with no single Note accounting for more than 2.5% of their total investment, have positive returns. To meet this criteria you would need to invest a minimum of $2,500 and none of the Notes could be greater than 2.5% of your total investment. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing. Past performance is no guarantee of future results.
This is a far stretch from the diversification they use to advertise and is certainly comforting for people with smaller accounts (like us). So the message today? Stick with investing $25 per note for smaller accounts and you *should* see a positive return. Invest in higher grade notes that are recently listed and you should see higher positive returns.